When Qualtrics went public in 2021, it was a watershed moment for the company. After years of waiting, investors finally had a chance to invest in what was quickly becoming one of the most popular data analysis platforms on the market. In just over two years since its separation from SAP, Qualtrics had delivered impressive financial results and established itself as a heavyweight player in the field. With its rapid growth and massive customer base, it was clear that Qualtrics would continue to make waves in business analytics for many years to come
Although Qualtrics was able to set its own direction and budget, SAP still had a significant say in how the company ran. This meant that, despite Qualtrics’ monetary value increasing tenfold over the years, SAP retained control of the majority of its stock and ultimately determined Qualtrics’ future.
Qualtrics ended up being acquired by Oracle in 2009, shortly after McDermott stepped down as CEO and Klein took over. At the time, it was seen as the next big acquisition for Oracle, but there’s been some criticism of how well it’s worked out for them. Many view Qualtrics as a missed opportunity for SAP to get more involved in the cloud space and tap into crucial customer data.
Qualtrics had always been a risky investment, but when the company began shopping it at the end of January, that risk was compounded by uncertainty over who would purchase Qualtrics. The best offer it received for Qualtrics came from a collection of buyers including Silverlake and the Canadian Pension Board. Considering SAP’s 71% stake in Qualtrics, its cut of that dollar figure comes out to around $8.8 billion – basically the price it purchased the company for in 2018 and not much more. This sale shows just how much commodity software has become as buyers race to acquire companies before they are sold off to competitors or go out of business altogether.
Qualtrics seems to have found a buyer in Silverlake Partners. The software company’s shares rose by 6% on the news, valuing the company at $540 million. Qualtrics had been caught up in rumors of a potential sale for some time, and its stock had already appreciated significantly before the announcement was made official. This suggests that investors trust that Qualtrics’ technology will continue to be valuable even after the sale is complete.
Looking at the price and analysis of the offer, it does seem like a good deal for almost anyone. However, it’s worth noting that this is not a done deal and there may be someone who comes along and offers a lower price. Regardless, it seems like this price is fair and Provides potential value to the buyer.
Fair or unfair
Qualtrics has seen rapid appreciation both before and after its acquisition by Oracle. As such, it’s likely that the company is being sold at a premium given its potential value as a part of Oracle’s portfolio.
